How badly is your credit rating affected for going over arranged overdraft?

peace800

Hi

I went over my arranged overdraft by £5 following a direct debit. I thought that I was within my arranged overdraft and had put money in accordingly but unfortunately I did not not calculate properly and I recived a letter in the post telling me that I will be charged a fee for going over my arrnaged overdraft and for the bank having to make payment for me for the direct debit.

I looked at the rates and it seems that it will be £5 for everyday overdrawn (so that will be 6 days as ive only realised today) and £10 for them paying my direct debit. Does that sound right?

But more importantly how badly will this effect my credit rating and will it harm my chances in getting a mortgage a few years down the line? Im upset that something so trivial as this could have consequences?

As I went out of my arranged overdraft (even by £5) , I know that it will show as fees on my credit rating but how will it affect it? will it really harm it? I want to get a mortage in 2 years time and Im worried that this may have harmed my credit rating?

thanks

really need advice!

Tiglath

I had something similar happen a few years ago (think I went £3 over and got charged a fee plus a broadband direct debit bounced), and it didn't show in my Equifax report or affect my credit rating at all. It wasn't a problem at all when we remortgaged for a fixed rate deal.

opinions4u

You'll almost certainly be fine.

But don't make a habit of it.

Anthorn

Over limit goes on the history of your bank account on your credit file and is a red entry. Sign up for free at Noddle to have a look at which information is recorded for your bank account.

Santander issues an over-limit entry from the second month it's over-limit and this may be true of most banks.

Isolated over limit entries on your credit file are unlikely to affect you but obviously successive over limit entries over several months will have a long lasting effect.